Did you know that an astounding number of people have absolutely no money in savings?
This is true with many arguing that they don’t make enough to save money for things like retirement or even a few years into the future. This can run into problems when individuals are trying to improve their financial situation. It’s difficult to do this if you can’t boost your income. One of the easiest ways to boost your income is to use the savings that you do have wisely through investments.
However, you might have heard that you can only invest if you have a sizable level of savings already. Is this the case? There are certainly some investment opportunities that are not accessible unless you have the right financial situation. However, this is not true for every possibility in the market. There are a few that are available to anyone and that’s what we’re going to explore today. We can also examine whether these could be the right investment choice for you.
Savings Accounts
If you look at the market, then you will find that there are various savings accounts that could be available to you. As an investment, a savings account can be an example of a passive income. Ultimately, this means that your money works for you and provides you with an extra cushion of cash that you can fall back on when the need arises. Some savings accounts will be off-limit because you need to input a certain amount each month which you may not have.
However, this won’t be true for every savings account. Some you can use even if you have limited amounts. The only issue is that the amount of savings that you accumulate will be limited because of low levels of interest. This is particularly true right now in the wake of the coronavirus when the interest rates are taking a sizable hit. However, even with low interest, you will still be able to slowly accumulate more money. So, while the payoffs might not be quite as great as you would perhaps hope, there’s still every reason so consider this possibility.
Penny Stocks
It’s easy and perhaps understandable why some people believe that you can only get on the stock market if you have thousands in your bank account. Indeed, many of us have grown up watching films like Wall Street that seem to glorify and sensationalise the life of those who make their fortunes trading stocks. However, the reality is that anyone can get involved in the stock market thanks to penny stocks.
Penny stocks are named as such because you can purchase them at low prices on the market. They are usually stocks in companies that have not yet seen a great level of success. They might even be in their first year. More than 90% of new businesses will fail in their first year on the market, which means that the majority of penny stocks will end up being completely worthless. Yet, the low prices make them worth the investment regardless of a type of situation similar to trying to win the lottery. There is always the chance that you end up investing in the next Apple, Microsoft, or Tinder.
There is no set rule about how to choose penny stocks. You can think about selecting them based on news stories that you have read. Or, even rumours that you have heard on the market.
These investments are however very high risk, and you can invest in more established companies for small amounts too, through unit trusts and mutual funds (see ‘Investing‘ here on Magical Penny for more information)
Forex
Forex is a popular investment option because it is so easy to access and understand. Forex is basically the trade of different currencies. You can make money by trading at the right time depending on whether a particular currency rises or falls in value. You can also trade as much or as little of the currency as you like. It’s one of the only investment options where this is a real possibility.
However, you may still want to use a broker to ensure that you choose correctly with this investment. A broker comparison help site will ensure that you are able to choose a broker who will be able to provide real benefits and keep you on the right track with your decisions in this area.
Property
You might think that if you have limited amounts in savings, then you won’t be able to access property investments. That’s a shame because property investments can provide massive gains that are going to be tremendously beneficial. The good news is that a low level of savings doesn’t always mean that the property market is off-limits to you. You might just want to think about starting small. You can think about making changes to the property that you have to boost the value. You’ll then be able to sell it on for a lot more than it was originally worth. Particularly, if you hit the market at the right time.
Once you do this, you will have money to put into further investments. You could even think about purchasing two small properties. You can live in one while using the other purely as an investment opportunity. You could either let it out or you can sell it on. Fixer-uppers are great choices here because you can get them at low prices on the market and then make aesthetic changes to them to boost the value. It might seem like something that you need expertise or knowledge for but it’s not as complex as it seems. You just need to ensure that you avoid properties with massive problems that you need to avoid.
We hope this helps you understand that there are numerous investment possibilities available, regardless of how much you have in your bank account. Indeed, if you are keen to make more money, the options are accessible to you. You just need to ensure that you are making calculations about the level of risk that you take on board.
It’s important that this doesn’t grow out of control and that you are never investing more than you can afford to lose.
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